Fresh savings of £6m must be made by Middlesbrough Council - but the days of swingeing cuts to public services are in the past, leaders say.

The authority is in the second year of an ambitious financial plan to boost investment in the town, lead regeneration, build new housing and create jobs.

But as central government funding cuts continue to bite, the council has identified nearly £6m worth of cuts it needs to make from the budget.

Closing parts of Ayresome Industries - which helps employ disabled people in the town - will save £200,000, and puts 13 roles at risk.

The authority says a lack of demand for the goods it produces has led to the decision - and the staff affected will be redeployed where possible.

Middlesbrough Town Hall (Image: Peter Reimann)

Much of the other overall savings are expected to be achieved by reorganisation and efficiency measures.

The council also hopes to increase income by almost £1m a year by increasing charges and fees by 2.5% in line with inflation for things like pest control, Town Hall charges, or its cleaning service, rather than the previously planned 1%.

And council tax bills will also rise again in the new year, by just under 2%, as set out last year.

The authority will also impose the 2% levy to help pay for adult social care.

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Since 2010 the authority has slashed spending by tens of millions of pounds in response to the Government’s austerity programme, which has cost hundreds of jobs.

Dave Budd, the elected mayor of Middlesbrough, said: “We used to have budgets a few years ago which was cliff-edge stuff, where services were being lost and buildings had to be closed - but those days seem to be behind us now.

“We’ve planned coherently and we’re in a position where we’re trying to grow, but obviously pressures in central government funding remain.”

Mayor Dave Budd (Image: Katie Lunn)

The council launched its flagship Investment Prospectus in March, which outlined its plan to invest £74m to attract outside investment of £625m.

That would see land close to Centre Square redeveloped with ‘Grade A’ office buildings, the Middlehaven snow centre being built, and other regeneration efforts around Middlesbrough Railway Station and other sites across the town.

The aim is to boost Middlesbrough’s profile nationally, create new jobs and boost the town’s coffers with more council tax and business rates.

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Chief executive Tony Parkinson said that since March, £50m had already been invested in the town and 500 jobs had been created.

He said: “By 2021 we need to be self-sufficient, and this budget is a continuation of the work we’ve already been doing.

“We’re ambitious, but the impact of reduced government funding does sometimes mean cuts.”

The latest budget will be considered by the council’s executive, and will then go before the full council before parts of the plan are consulted upon.

Final agreement won’t come until next March.

And the council desperately want to hear the views of businesses and individuals in the town on its proposals - and its plan for the town’s future.

Chief executive Tony Parkinson (Image: Dave Charnley Photography)

Mr Parkinson continued: “We’ve got physical and social ambitions, we want to regenerate the town and bring jobs and we’ve got our plans to do that. We want to raise standards in education. I’d be really interested to hear what people think of that, and maybe what they’d like to see done. What their priorities are.”

Speaking about cuts to the latest budget, Councillor Nicky Walker, the executive member for finance and governance, said: “We will always endeavour to minimise the impact on the public but difficult decisions still have to be made, and that’s why it’s vital that we seek the views of local people as part of the budget setting process.

“That will enable us to keep on delivering the services local communities want, while ensuring the town continues to grow.”

A report to be considered next week also sets out how the council will spend £4.2m over the next three years to ensure its staff are paid the Living Wage - and a further £2.6m to see contracted workers receive the increased minimum wage.